The Trump administration is considering steep tariffs on semiconductors, according to a foreign news report. The plan is seen as a strategy to promote domestic chip production by covering most products that contain semiconductors.
Politico, a U.S. political news outlet, reported on the 27th, citing multiple sources, that the administration is discussing a sharp expansion of the range of products subject to chip tariffs. Laptops, game consoles and data center servers are among the finished goods that could be included.
Officials are also weighing separate tariff rates and import quotas for individual countries, along with country-specific guidelines for major chipmakers, sources said. Phasing in the new tariffs after a grace period is another option under discussion.
Commerce Secretary Howard Lutnick, however, favors tying tariff relief for foreign companies to their production investments in the United States, the outlet said. Politico said the proposals could still be substantially revised.
The U.S. government began imposing chip tariffs in January on a very narrow set of products, while signaling that it could later broaden the levies to semiconductors more generally. Some analysts warn that a wider expansion could hurt artificial intelligence investment in the U.S. With a global chip shortage persisting, they say, the tariffs could make it harder for American companies to secure AI chips on time and slow the pace of infrastructure buildout.
